Tax In Slatington Is Expected To Rise

Slatington residents probably will see their real estate tax bills rise next year under the $1.9 million budget proposed by Borough Council.

Council is expected to adopt the budget, which calls for a nearly 10 percent increase in real estate tax revenues at its meeting on Monday, Borough Manager Stephen Sechriest said.

This year's comprehensive reassessment of all taxable property in the borough makes it difficult to predict the effect the increase will have on individual tax bills, Sechriest But "the net effect will be an increase, all things being equal," he said.

Municipalities may increase real estate tax revenue by a maximum of 10 percent in the year following a comprehensive reassessment, state law says.

The Lehigh County Department of Assessment this year hiked the value of the taxable land in the borough to $51.5 million -- more than 3.75 times the earlier assessment of $13.7 million.

To compensate for the surge in assessed value, the borough proposes cutting next year's property tax millage by about two-thirds. Assessed value is one-half of a property's market value.

The current tax rate is 30 mills, or $30 of tax for every $1,000 of assessed value. Each mill of tax generated $12,400 this year.

Under the proposed budget, the tax rate would be 8.78 mills, or $8.78 of tax for every $1,000 of assessed value. Each mill would generate $46,600 next year.

The following is a hypothetical example of a house with a $50,000 market value, reassessed at $187,500 this year.

Using the 1990 tax structure, the house would have an assessed value of $25,000. At the 1990 tax rate of 30 mills, the property owner would pay a $750 tax.

Using the proposed 1991 tax structure, the house would have an assessed value of $93,750. At the proposed rate of 8.78 mills, the property owner would pay an $823 tax.

Next year, the borough projects collecting $409,109 in current real estate tax, up from $372,000 this year.

Overall spending in the borough's five funds will rise to $1.9 million from nearly $1.8 million this year, Sechriest said.

Most of the spending will be from the general fund. General fund spending would rise to $775,065 under the proposed budget, up from $721,750 this year.

More money -- $251,545 -- in the general fund is budgeted for police operations than any other item.